Interim Results
Prime People PLC
10 August 2005
Prime People Plc
Interim Report
for the six months ended 30 June 2005
Prime People Interim Report 2005
Chairman's Statement
Prime People Plc reports a loss on ordinary activities before taxation of
£41,183 for the six-month period ended 30 June 2005. The profit before tax for
the corresponding period in 2004 of £58,851 included an operating profit
contribution of £165,767 from Portfolio International Limited ('Portfolio')
which was disposed of in July 2004. As a result of the receipt of the proceeds
of sale of Portfolio net interest received increased to £67,540 (2004: £19,444).
Following the disposal of Portfolio our only continuing operation is Harper
Craven, the professional training company. Despite a reduction in turnover
Harper Craven generated profit before tax of £22,782 (2004: £19,708).
Our associate, Cameron Kennedy, is experiencing relatively strong market
conditions. However recruitment of new consultants together with the payment of
higher bonuses in the period has resulted in our share of its profit remaining
similar to the corresponding period in 2004 at £17,701 (2004: £15,770).
Of the administrative expenses charged to the period under review some £155,000
related to the head office and public company costs of Prime People. It is
expected that these costs will be approximately £189,000 in the second half of
the year.
Net assets at 30 June 2005 were £3.3 million of which £2.8million was cash at
bank.
The option exercise price for the options granted to the executive directors on
16 May has been reset to 5.75p being the share price as at that date. The
executive directors will be entitled to receive a cash bonus dependent on
achieving certain performance criteria and at the absolute discretion of the
Board.
Since May, the Board has significantly increased the intensity of its effort to
achieve its stated short to medium term strategic aim of identifying
acquisitions, which will provide platforms to generate profitable growth and
shareholder value.
Richard Lee has today resigned from the Board. Richard is also a director of WH
Ireland, our nominated adviser, and it is not possible for him to continue in
both roles. I would like to thank Richard for his contribution to the Board
over many years.
Peter Hearn
Non-executive Chairman
10 August 2005
Prime People Interim Report 2005
Consolidated Profit and Loss Account
for the six months ended 30 June 2005
Six months Six months Year
Ended Ended Ended
30 June 30 June 31December
2005 2004 2004
Notes Unaudited Unaudited Audited
£ £ £
Turnover
- Continuing operations 307,491 374,883 708,653
- Discontinued operations - 1,377,640 1,585,895
307,491 1,752,523 2,294,548
Cost of Sales
- Continuing operations (83,827) (107,052) (179,571)
- Discontinued operations - (7,240) (7,240)
(83,827) (114,292) (186,811)
Gross Profit 223,664 1,638,231 2,107,737
Administrative expenses (344,088) (1,608,594) (2,197,259)
Group operating (loss) / profit
- Continuing operations (120,424) (136,130) (283,243)
- Discontinued operations - 165,767 193,721
(120,424) 29,637 (89,522)
Share of operating profit in associate 17,701 15,770 87,133
Amortisation of goodwill (6,000) (6,000) (12,000)
(Loss) / profit on ordinary activities before
interest (108,723) 39,407 (14,389)
Profit on disposal of subsidiary - - 609,844
Interest receivable and similar income 68,272 19,444 79,530
Interest payable and similar charges (732) - (487)
(Loss) / profit on ordinary activities before
taxation (41,183) 58,851 674,498
Tax on (loss) / profit on ordinary activities 2 - - (2,112)
(Loss) / profit on ordinary activities after
taxation transferred to reserves 5 (41,183) 58,851 672,386
(Loss) / earnings per ordinary share
- Basic 4 (0.11)p 0.16p 1.82p
- Diluted (0.11)p 0.16p 1.82p
Prime People Interim Report 2005
CONSOLIDATED BALANCE SHEET
at 30 June 2005
30 June 30 June 31 December
2005 2004 2004
Notes Unaudited Unaudited Audited
£ £ £
Fixed assets
Tangible assets 39,198 57,167 44,028
Investment in associate 423,377 346,314 411,676
462,575 403,481 455,704
Current assets
Debtors 245,538 1,000,499 262,052
Cash at bank and in hand 2,808,142 1,275,690 2,835,981
3,053,680 2,276,189 3,098,033
Creditors: Amounts falling due within one year (208,353) (593,875) (200,903)
Net current assets 2,845,327 1,682,314 2,897,130
Creditors: Amount falling due after one year (8,748) - (12,497)
Net assets 3,299,154 2,085,795 3,340,337
Capital and reserves
Called up share capital 368,467 368,467 368,467
Share premium account 5 909,925 909,925 909,925
Merger reserve 5 173,077 173,077 173,077
Profit and loss account 5 1,847,685 634,326 1,888,868
Shareholders' funds 6 3,299,154 2,085,795 3,340,337
Prime People Interim Report 2005
Consolidated Cash Flow Statement
for the six months ended 30 June 2005
Six months Six months Year
Ended ended ended
30 June 30 June 31 December
2005 2004 2004
Notes Unaudited Unaudited Audited
£ £ £
Net cash (outflow) / inflow from operating activities 7 (95,503) 203,412 (93,986)
Return on investment and servicing of finance
Interest received 68,272 19,444 79,530
Interest paid (732) - (487)
67,540 19,444 79,043
Taxation - 74,350 74,350
Capital expenditure and financial investment
Purchase of tangible fixed assets (3,490) (19,845) (37,592)
Sale of tangible fixed assets 899 800 1,800
(2,591) (19,045) (35,792)
Acquisitions and disposals
Sale of subsidiary undertaking - - 1,905,284
Net cash disposal with subsidiary - - (53,986)
- - 1,851,298
Net cash (outflow) / inflow before management of
liquid resources and financing (30,554) 278,161 1,874,913
Management of liquid resources
Sale / (purchase) of deposits 27,700 (229,000) (1,647,000)
Financing
Capital element of finance leases (3,749) - (2,501)
(Decrease) / increase in cash 8 (6,603) 49,161 225,412
Prime People Interim Report 2005
Notes To The Interim Financial Statements
for the six months ended 30 June 2005
1. Accounting Policies
The interim results have been prepared on the same basis and using
the same accounting policies as those used in the preparation of the accounts
for the year ended 31 December 2004.
2. Taxation on profit on ordinary activities Group
2005 2004
£ £
UK corporation tax - -
Share of associate's tax - -
- -
3. Dividends
The directors recommend that no interim dividend be paid.
4. Loss per share
The loss per share is calculated based on a weighted average number
of shares of 36,846,692 (2004: 36,846,692) and the loss of £41,183 (2004: profit
of £58,851) giving loss per share of 0.11p (2004: earnings per share of 0.16p).
5. Reserves
Share Premium Merger Reserve Profit
Account and Loss Account
£ £ £
At 1 January 2005 909,925 173,077 1,888,868
Transfer from Profit and Loss Account - - (41,183)
At 30 June 2005 909,925 173,077 1,847,685
Prime People Interim Report 2005
Notes To The Interim Financial Statements
continued
6. Reconciliation of movement in shareholders' funds
30 June 2005 30 June 2004 31 December 2004
Unaudited Unaudited Audited
£ £ £
(Loss) / profit for the period (41,183) 58,851 672,386
Goodwill eliminated on disposal of subsidiary - - 641,006
Opening shareholders' funds 3,340,337 2,026,944 2,026,945
Closing shareholders' funds 3,299,154 2,085,795 3,340,337
7.Reconciliation of operating (loss) / profit to net cash (outflow) /
inflow from operating activities
Six months ended Six months ended Year
30 June 2005 30 June 2004 ended
Unaudited Unaudited 31 December
2004
Audited
£ £ £
Group operating (loss) / profit (120,424) 29,637 (89,522)
Depreciation 7,331 24,334 33,784
Loss / (profit) on sale of tangible fixed assets 90 (800) (1,800)
Decrease / increase in debtors 16,514 47,855 (155,561)
Increase in creditors 986 102,386 119,113
Net cash (outflow) / inflow from operating
activities (95,503) 203,412 (93,986)
Prime People Interim Report 2005
Notes To The Interim Financial Statements
continued
8.Reconciliation of net cash outflow to movement in net funds
Six months ended Six months ended Year
30 June 2005 30 June 2004 ended
Unaudited Unaudited 31 December 2004
Audited
£ £ £
(Decrease) / increase in cash in the period (6,603) 49,161 225,412
Cash outflow from decrease in debt and lease
financing 3,749 - 2,501
Cash outflow / (inflow) from increase / (decrease)
in liquid resources (27,700) 229,000 1,647,000
(Decrease) / increase in net funds resulting from
cash flows (30,554) 278,161 1,874,913
New finance leases - - (22,496)
Opening net funds 2,800,187 947,770 947,770
Closing net funds 2,769,633 1,225,931 2,800,187
9.Analysis of net funds
At 1 January Cash flow At 30 June
2005 £ 2005
£ £
Cash at bank and in hand 192,981 (139) 192,842
Bank Overdraft (15,799) (6,464) (22,263)
177,182 (6,603) 170,579
Liquid resources 2,643,000 (27,700) 2,615,300
Finance leases (19,995) 3,749 (16,246)
TOTAL 2,800,187 (30,554) 2,769,633
Prime People Interim Report 2005
Notes To The Interim Financial Statements
Continued
10. Nature of the financial information
The interim financial information for the six months ended 30 June 2005, was
approved by the board on 9 August 2005.
The financial information set out above does not constitute full accounts within
the meaning of Section 254 of the Companies Act 1985. The results for the year
to 31 December 2004 are extracts from the published accounts for that year which
have received an unqualified audit report and have been filed with the Registrar
of Companies.
Copies of the interim results are being sent to shareholders. Further copies
can be obtained from the company's registered office at: 7 Bream's Buildings,
Chancery Lane, London EC4A 1DT.
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 6 hours ago Urban Logistics Reit
- 6 hours ago Ocado Group
- 6 hours ago AJ Bell
- 7 hours ago Foresight Enterprise VCT
- 7 hours ago Mitie Group